Quote:
Originally Posted by charmian
I didn't think Borders's prices were high if you take into account the discount coupons they were always offering. They would often have 20-30% off coupons, and sometimes even 40-50% ones.
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That in itself was a dysfunction.
A big retailing no-no.
It conditions customers to *wait* for the coupons and discourages impulse buying and impulse traffic.
Walmart, for one, initially built itself on the premise that their everyday prices were sales prices so consumers didn't need to wait for "special discount" offers. They've moved away from that message in recent times, though.
In a business obsessed with maintaining "perceived value" and saddling their product with high list prices, deep discount coupons simply tell customers *not* to buy at regular prices.